Published on 6/27/2013 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $297,000 contingent income barrier notes linked to S&P 500
By Susanna Moon
Chicago, June 27 - HSBC USA Inc. priced $297,000 of contingent income barrier notes due June 28, 2023 linked to S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 7% if the index closes at or above the 75% coupon barrier level on the determination date for that month.
If the index finishes at or above the 55% barrier level, the payout at maturity will be par.
Otherwise, investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income barrier notes
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Underlying index: | S&P 500 index
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Amount: | $297,000
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Maturity: | June 28, 2023
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Coupon: | 7%, payable monthly if index closes at or above trigger level on determination date for that month
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Price: | Par
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Payout at maturity: | If index finishes at or above 55% barrier level, par; otherwise, full exposure to any losses
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Initial level: | 1,588.03
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Trigger level: | 1,191.02, 75% of initial level
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Barrier level: | 55% of initial level
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Pricing date: | June 25
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Settlement date: | June 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3%
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Cusip: | 40432XGV7
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